Recommended financing co. for 360?

I used PenFed for mine..

 

If the car is 'known' to a local authorized Ferrari dealer, you may be able to go there and see if they will insert themselves into the deal. Here's how it would work: you would apply for a loan through Ferrari Financial. They will finance up to 80% of the purchase price of the car but not less than $50,000. If you are approved, the dealer will cut a check to the seller for the amount that you negotiated with the seller. At the same time, you will sign papers for the loan and present your 20% down. You must have good credit. In short, the lowest amount of a purchase price is $62,500, 20% of which is $12,500, which you would need to pony up as a 'down payment' (plus all other applicable fees and taxes) and finance the remaining $50k. This is what I did and my rate is 5% (or maybe it was 5.5, I can't remember) for 7 years.

 

After I experienced the same thing when looking for my car, I got tired of the BS and paid cash for a nice 348 spider instead. I still would like a 360 but I also don't have a payment and the finance company was giving me a headache!

 

+1, 2% is pretty tought to beat. Their customer service is excellent as well.

 

I have spoken with Gary Truzzolino at Putnam a number of times and he's always seemed forthright and honest. I've never actually closed a deal with him as in the end, adding the cost of the money to a deal I can pay cash for never seems to add up however I know people that have worked with him on their cars and have been very happy.

 

If you hace a home equity line, you can use that to pay for the car and write the interest off of your taxes.

 

Wow, 2%? Is this a fixed rate? How much money down was required? I can't believe a loan company can make money charging so little. Very impressed.

 

2%?!? I'll take that in a heart beat. Maybe I shouldn't have paid cash.

 

Depends on the value of the car vs. purchase price. Tthey will finance up to the book retail value of the car or 70k, whichever is lower, and it was 2% on a 4 year, 2.5% on a 5 year fixed rate, it might be slightly different now depending on how much you borrow and how long a term you want. They're a (massive) credit union, so not out to make a huge profit hence the low rates. Go to their website for details, but I think their motto is along of the lines of if you can find a better deal, take it. With the interest so low, it was cheaper for me to use them than pull the money out of investments.

 

https://www.penfed.org/used-auto-loan/

Yep 2% fixed, up to 70k

 

Re the last 2 posts, I just called them and got some info. its a little more complicated than that. There are mileage limitations and value limitations, but they both appear generous. They seem very conservative and require a 38% max back-end ratio (not front-end), which is really conservative. For those not in finance, your back end ratio is your total recurring debt (housing payment, alimony, recurring credit card payments, other car paymetns, and more) divided by your monthly income. I'm looking into whether or not I could qualify since I'm really curious about this now. I'm self employed so they will look at me very carefully. Others may have this problem as well. The operator I spoke to said they are very conservative, hence the low rates. Also, she said in my case (a 2000 360), the most they would loan is about $63k (assuming I qualified) and the most they would do in terms of term was 5 years for 1.99%. I would only need to borrow $50k to pay off my FF loan so that's all I would seek, but at 1.99% for 5 years my monthly payment would be $877 whereas my current 5.50% for 7 years with FF is $718 month. The cumulative interest with FF is signficantly more, but only if I keep the car that long. Who knows if I will, hence yet another consideration in whether to bother making an application, though it doe seem pretty painless.

 

If you are buying from a car place, inquire as to their financing options.

 

I use Jackson Grant and Franklin and only for non-depreciating assets.
They may not see the wisdom of a 360 yet.

 

As a banker that has recently financed a car purchase (I was the buyer not the lender) I thought I'd share a few thoughts. Obviously, I don't know your balance sheet or income statement, but you're buying a Ferrari so...

First, I COMPLETELY over think finance stuff. I had five financial institutions work on the deal. Two banks, two credit unions, and 1 leasing company. I kept my trusty hp12c handy (my calculator). One of those credit unions also did insurance (a second revenue source for them if I insured the vehicle). One of those banks held my investment accounts and larger banking accounts (a second and third source of revenue for them) and one of the credit unions also held some of my operating banking accounts (ATM).

I told each of them what Ferrari of North America would do in terms of financing and that I was asking other financial institutions to help me put together the right deal. I wanted a 6 year term with the lowest interest rate (or IRR in the case of the lease taking into account my belief of the final value of the car being different than the leasing company and the tax benefit of leasing)

I asked each provider to cut the posted rate by as much as they could and gave them reasons why they should (my credit score, balance sheet, debt to income ratio, all represented lower than average risk for the lender and my additional business that I was either already doing or capable of doing represented additional revenue).

I made sure to complete all of this within two weeks (credit report benefit).

I was able to attain a loan that was 99 basis points cheaper than the stated rates with a 10% higher loan to value than the standard rate. Part of that rate difference was actually a mistake on their part (I take detailed notes) when they quoted me new car rates, for a Challenge Stradale.

I only share this in case you weren't thinking about the various barganing tools you have at your disposal.

The 10-year has compressed this week so this is a good time to be looking for low cost capital.

Good luck!

 

I recommend paying cash for all toys such as a Ferrari. If you can't afford to pay cash, you may would to reconsider your decision to buy a Ferrari at this time in your life.

 

I don't understand why on every finance post someone must say " pay cash etc .." . There are many reasons someone chooses to finance.

Many of those who say pay cash has financed their DD which depreciates much faster .

 

I agree that you should consider paying cash. Once you consider your options, you will probably decide not to pay cash once you realize that your cash can work harder invested in other items that are likely to earn more than your car will appreciate. If you can't afford to pay cash, you shouldn't finance. If you can afford to pay cash, then financing may be the better option.

 

Well said! I paid cash recently on a F430 Spider, but am now considering getting a loan on it. At these rates, my money can do much better than the interest costs.

If you are financing an exotic car because you have to, it means you are stretching yourself financially. If that is the case, you will only be more stretched should you receive a major repair bill. Certainly a car that is going to depreciate the least will be out of warranty. These expensive depreciating assets can wreack havoc on long term financial plans so if you are financing because you have to, you need to think twice.

Myabe it's best to get into something that is fun, but less costly. I did that with a 96' Viper GTS, which was a blast for years. I bought it in 2007 for $54K and am now selling it for $40-45K. I should also mention I had $20K in surprise costs due to an engine rebuild. It was a freak thing, but still it happens and you need to be prepared for that and what it could mean for your finances short and long term.

 

Everyone does not finance due to lack of money. Major catastrophes are not common but can happen to any vehicle.

I dont understand the logic of paying cash for exotic and financing daily driver.

Just because it an exotic doesnt mean many owners treat it that way. Most of the time they just sit in the garage and rarely driven or worked on.

 

Don,

I'm not saying not to finance, I'm agreeing with Bleu who said if you are financing because you can't afford it otherwise, then don't buy it (now). If you are financing in an attempt to make your money work smarter, then go for it. I'm considering it because of this thread.

Ask yourself, can you afford to pay cash? If not, is this really something you can afford to do with your money? Look at what it actually costs to have the money in a depciating assets rather than a true investment. The younger you are, the more that effects you.

 

There's always someone... "Pay cash or don't buy it"

Then it's "Don't buy unless you have your house paid off"
Then it's "Don't buy until all your other responsibilities are paid off and the kids college is paid.
Then it's "Don't buy unless your retirement funds are up to snuff"

And then when you finally get it, your legs are too stiff to get in and out of the car and the seats aggravate your back.. and you sell it 6 months after you buy it and get an SL55 AMG because the performance is the same but it's more comfortable.

If you can find a loan with am interest rate at or below 3% (see Penfed). Get the loan, put the rest into PFI, preserve your principal, and pocket the 1% difference. It's a return at least as good as some bonds and better than a checking account.

 

True investment? Like what? A house? ;-) Equities.. Ok. Bonds? Treasuries? A business?